Nigeria’s Minister of State for Petroleum Resources, Timipreye Sylva was on Wednesday appointed Special Envoy for further consultations with the Organization of Petroleum Exporting Countries (OPEC) ‘Declaration of Cooperation’ (DoC) participating countries.
The DoC consists of OPEC member countries and their non-OPEC counterparts, led by Russia, that consented to a resolution in November 2016 to implement a production cut of 1.2 million barrels per day, effective from January1, 2017 with the aim of strengthening oil prices and stabilizing the global oil market.
Members of the DoC include Angola, Algeria, Ecuador, Equitorial Guinea, Gabon, Islamic Republic of Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arb Emirate, Venezuela, Azerbaijanm Bahrain, Brunai Darussalam, Kazahkstan, Malaysia, Mexico, Oman, Russian Federation, South Sudan, and Sudan.
At the 26th Meeting of the Joint Ministerial Monitoring Committee (JMMC) on Wednesday, February 3, 2021, the Chair of the Committee, Saudi Arabia’s Minister of Energy, Abdul Aziz bin Salman, and Co-chair, Deputy Prime Minister of the Russian Federation, Alexander Novak, announced Mr Sylva’s appointment.
Mr bin Salman who commended the positive efforts of all DoC participating countries for the great strides towards attaining full compliance with their voluntary output cut agreement, commended Mr Sylva specially for ensuring that Nigeria complied fully with the decision.
“Participating Countries have been proactive and pre-emptive in measures taken to mitigate the devastating impact of the COVID-19 pandemic on the oil market,” Mr bin Salman.
While progress has been achieved in introducing a greater degree of stability in the oil market since the historic decisions taken in April 2020, participating countries will not rest. Sustainable oil market stability necessitates a continual renewal of effort, engagement and responsiveness to factors affecting the market.
“In line with the principles of fairness, transparency and equity that underpin the DoC, the JMMC has mandated the Minister of State for Petroleum Resources of Nigeria, HE Timipre Sylva, to undertake a mission as Special Envoy to the following Participating Countries: Congo, Equatorial Guinea, Gabon and South Sudan.
OPEC said the purpose of the mission is to hold consultations with the respective leaders of these countries on the DoC market rebalancing efforts.
In particular, the Special Envoy would be expected to discuss matters pertaining to conformity levels with the voluntary production adjustments and explore how Participating countries can collectively support and assist each other in achieving full conformity with their supply adjustments.
Also, Mr Sylva would also discuss with relevant authorities the compensation mechanism in accommodating underperformed volumes as agreed at the June ministerial meetings, and later amended in September 2020.
In addition, the mission of the Special envoy will be to solidify the dialogue channels between Participating Countries, and enhance transparency and information exchange.
Given the geographic proximity of these countries, it is a rare opportunity for Ministers and leaders to safely meet in person, following months of virtual conferencing.
Nigeria is the largest producing country in Africa and a key member of the DoC.
In 2021, Nigeria will mark the 50th Anniversary of its Membership of OPEC.
The Declaration of Cooperation (DoC) constitutes an unprecedented milestone in the history of the Organization of the Petroleum Exporting Countries (OPEC).
For the first time ever, OPEC Member Countries coordinated with 11 non-OPEC oil producing countries (now 10 – Equatorial Guinea became an OPEC Member in May 2017) in a concerted effort to accelerate the stabilization of the global oil market.
The DoC was an outcome of the Joint OPEC and non-OPEC Producing Countries’ Ministerial Meeting held on 10 December 2016 and was effective for an initial period of six months.
The remarkable success realized through this unprecedented cooperation has led to its extension multiple times.
Building on the success of the DoC, its members at the 6th OPEC and non-OPEC Ministerial Meeting, July 2, 2019, endorsed the ‘Charter of Cooperation’.
The Charter provides a platform to facilitate dialogue and exchange views regarding conditions and developments in the global oil and energy markets.
The goal is to contribute to a secure energy supply and lasting stability for the benefit of producers, consumers, investors and the global economy.
In light of the COVID-19 outbreak and its impact on the world economy and the oil sector, members of the DoC held three Ministerial Meetings between April and June 2020.
In addition, OPEC Member Countries convened for the 179th Meeting of the OPEC Conference on 6 June to explore possible avenues to reduce market volatility, reaffirming the countries’ commitment to a stable oil market.
The outcome of these meetings was the largest and longest voluntary production adjustments in the history of the oil sector.